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Tuesday 9 June 2015
Shiloh Woman Pleads Guilty to Making False Claims in Operating Tax Preparation BusinessRead the Press Release
Shanta C. Doss, 35, of Shiloh, Illinois, entered pleas of guilty to fifteen counts of Making False Claims Against the United States through the preparation and submission of fraudulent federal tax returns, Stephen R. Wigginton, United States Attorney for the Southern District of Illinois, announced today. Doss faces a statutory maximum penalty of up to seventy-five years in prison, three years supervised release, a fine and mandatory restitution to the United States. Sentencing is scheduled for September 29, 2015.
Facts revealed in Court showed that from 2011 through 2013, Doss prepared and electronically submitted returns to the Internal Revenue Service for friends and from other referrals. Many of these returns were false in that she electronically filed Schedule "C" forms that inflated or entirely fabricated business income. Doss knew she was required to disclose to the IRS that she was a paid preparer and to identify herself on the Form 1040. Instead, Doss concealed her identity by failing to disclose herself as a paid preparer on the Forms 1040. Doss concealed her identity to evade detection from the IRS because she was operating a tax refund fraud scheme.
The successful prosecution is the result of an investigation conducted by the Internal Revenue Service/Criminal Investigations. The case was prosecuted by Assistant United States Attorney Norman R. Smith.
Sex Offender Sentenced to Prison for Failing to RegisterRead the Press Release
A convicted sex offender who failed to register after moving back to Iowa was sentenced on June 8, 2015, to more than one year in federal prison.
Lester Ealy, 51, from Cedar Rapids, Iowa, received the prison term after a March 31, 2015, guilty plea to one count of failing to register as a sex offender.
At the guilty plea, Ealy admitted to failing to register as a sex offender living in Iowa from June 2014 through February 2015. Ealy was required to register because he had previously been convicted of sexual assault in Nebraska state court. He had also previously been convicted of failing to register as sex offender on four previous occasions in Iowa, Nebraska, and Washington.
Ealy was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Ealy was sentenced to 21 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Ealy is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshall’s Service.
Court file information is available at https://ecf.iand.uscourts.gov/. The case file number is 15-CR-22.
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Seven from Stark County indicted for cocaine conspiracyRead the Press Release
Seven Stark County men were indicted in a 13-count federal indictment for their roles in a conspiracy to distribute cocaine and crack cocaine in the Canton area, law enforcement officials said.
Indicted are: Derrick L. Walton, 40; Gregory N. Burns, 41; Jon A. Herring, Jr., 34; Dwight A. Martin, 25; Michael Patterson, 30; Jermaine L. Woodson, 36, all of Canton, and Robert L. Morrow, 45, of Massillon.
All seven are indicted in count one with conspiracy to possess with the intent to distribute cocaine and cocaine base (crack). Count two charges Morrow with being a felon in possession of ammunition, and counts three through 13 charge Burns, Woodson, Martin, Patterson, and Herring with use of a telecommunication facility to facilitate a drug trafficking offense.
The defendants engaged in a conspiracy between 2012 and the present in which they received cocaine and crack cocaine from James Walton, according to the indictment.
“These defendants are part of a group that packed guns and sold drugs in neighborhoods with impunity,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
“These seven individuals will now be joining their co-conspirators behind bars,” said Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office. “Prior to this morning’s efforts, law enforcement had seized over nine kilograms of cocaine, 15 firearms, and cash and assets in excess of $400,000 -- all proceeds of the drug trafficking conducted in this investigation.”
“This case is the result of continued dedication by federal, state and local law enforcement in this community,” said Canton Police Chief Bruce Lawver. “We have focused on the most violent individuals responsible for irreparable harm done to our neighborhoods.”
This case is being prosecuted by Assistant United States Attorney Teresa L. Riley following an investigation by the Stark County Safe Streets Task Force. The task force includes members of the Federal Bureau of Investigation, Canton Police Department, Alliance Police Department, Jackson Township Police Department and the State of Ohio Parole Authority. The Ohio State Highway Patrol also assisted with the investigation.
This indictment is the second in this investigation which has resulted in 21 convictions to date. James Walton was previously indicted and is awaiting trial.
If convicted, the defendants’ sentences will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Roma Man Sentenced for Trafficking MarijuanaRead the Press Release
McALLEN, Texas ‐ Jaime Cisneros, 50, of Roma, has been ordered to federal prison following his conviction of possessing with intent to distribute approximately 434 kilograms of marijuana, announced U.S. Attorney Kenneth Magidson. Saenz pleaded guilty Feb. 2, 2015.
Today, U.S. District Judge Marina Garcia Marmolejo, handed Cisneros a 155-month sentence to be immediately followed by four years of supervised release. At the hearing, the court considered Cisneros’s 2003 drug trafficking conviction out of Corpus Christi as well as two other instances in which Cisneros was involved in the trafficking of large quantities of marijuana. Judge Marmolejo further increased Cisneros’s sentence by finding he was a manager or supervisor of the extensive drug trafficking organization.
On March 19, 2014, Cisneros directed co-conspirators to conceal 43 bundles of marijuana in a brushy area in Fronton. Law enforcement approached the area and were able to seize 43 bundles of marijuana weighing approximately 434 kilograms.
Cisneros will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading to the charges was conducted by Homeland Security Investigations and Border Patrol. Assistant U.S. Attorney Kristen Rees prosecuted the case.
Richmond Resident Detained on Stalking ChargesRead the Press Release
HOUSTON – A federal judge has ordered that Heriberto Latigo, 42, of Richmond, be remanded to custody pending further criminal proceedings on allegations of stalking, announced U.S. Attorney Kenneth Magidson.
In the detention order, publicly available today, U.S. Magistrate Judge Nancy Johnson found Latigo’s “alleged conduct to be so egregious and threatening to the victim, that detention is warranted.”
A grand jury indicted Latigo for one count of stalking on May 28, 2015, and arrested two days later. The detention hearing was held Friday, June 5, 2015.
At the hearing, Judge Johnson heard evidence about Latigo’s alleged systematic torture of the victim from March 2014 to April 2015, during which time he sent her horrific images and threatening email messages, according to testimony.
Latigo allegedly had nude photographs of the victim and threatened to distribute them if she did not comply with his sexual demands. Testimony revealed that she refused and he then allegedly sent the images to third parties including the victim’s sister. He allegedly claimed they were his photographs and that he could do whatever he wanted with them. According to the testimony, Latigo also created a Facebook page under “Magdalena Aborted” purporting to be the aborted fetus of the victim. Latigo then allegedly sent the victim an email stating, “Your abortion video will now be posted you whore.”
Testimony further revealed that Latigo repeatedly told the victim that his online harassment was perfectly legal and her attempt at seeking a civil remedy would be futile. According to allegations discussed in court, the relationship devolved into physical altercations, to include an alleged rape in September 2014 when Latigo came to the victim’s home. The victim reported to authorities that Latigo told her no one would believe her if she called the police.
Testimony further revealed that the victim’s passport was allegedly found in Latigo’s home. The victim believed she lost her passport and was unaware that Latigo had it in his possession, according to court testimony.
The government also informed the court that Latigo is in the midst of a divorce and custody battle and has taken his minor children out of the country without their mother’s permission. Latigo’s mother is a citizen of Mexico and owns property there, according to testimony.
Judge Johnson considered all of the evidence and testimony and ultimately found there to be no condition or combination of conditions that will reasonably assure Latigo’s appearance in court. She further noted he presents a danger to the victim.
If convicted, Latigo faces up to five years in federal prison and a possible $250,000 fine.
The allegations against Latigo are the result of an investigation conducted by the FBI. Assistant U.S. Attorney Sherri Zack is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Rexburg Man Found Guilty of Illegally Storing and Disposing of Hazardous WasteRead the Press Release
POCATELLO – Max Spatig, 73, of Rexburg, Idaho, the owner of MS Enterprises, was convicted yesterday, following a two-week jury trial in federal court in Pocatello, of the felony of knowingly storing and disposing of hazardous waste on a property off the Archer-Lyman Highway near Rexburg, U.S. Attorney Wendy J. Olson announced.
On July 8, 2010, a total of 3,478 containers of hazardous waste materials were found on the property outside of Rexburg. Many of the containers were labeled as containing hazardous materials and many were corroded. They had been left outdoors for years. Samples taken from some of the containers confirmed that the contents were hazardous waste due to ignitability and corrosivity characteristics. Ignitable materials catch fire at relatively low temperatures and present a dangerous fire hazard. Corrosive materials cause other materials to dissolve on contact. The contents of the containers were shipped to a hazardous waste disposal facility, incurring a cost to the federal government of $498,652. Neither MS Enterprises nor Spatig had any permits from the Environmental Protection Agency (EPA) or the Idaho Department of Environmental Quality (DEQ) that would have covered the operation of a hazardous waste dump.
Spatig had engaged in similar conduct before. In 2005, the State of Idaho cleaned up hazardous waste from another property belonging to Spatig near Menan in Jefferson County, Idaho. The cost of that cleanup was $188,000. Previous to 2005, Spatig engaged in similar conduct in Kaysville, Utah.
Spatig’s sentencing is scheduled for August 24, 2015, before visiting Senior U.S. District Judge Wiley Daniel, of Colorado, who presided over the trial.
“Illegally storing hazardous materials puts society at risk,” said Olson. “We are deeply concerned about the threat to public safety and to our environment. Investigation and prosecution of these cases will continue to be a priority for our state and federal partners and for this office.”
“For years, the defendant knowingly stored hazardous waste without regard to the dangers it posed to the public and to the environment,” said Lance Ehrig, Acting Special Agent in Charge of EPA’s criminal enforcement program for Idaho. “When EPA’s emergency response team first arrived on the defendant’s property, they found thousands of containers filled with corrosive and ignitable hazardous waste. The situation put human health at serious risk and cleanup cost the government hundreds of thousands of dollars. Today's guilty verdict by a jury demonstrates that the American people demand that if business owners treat our nation's environmental laws with contempt, they be held accountable."
The conviction for storing and disposing of hazardous waste without a permit carries a penalty up to five years in prison, a maximum fine of $250,000, and up to three years of supervised release. Because of multiple violations of court-orders prior to trial and offenses committed while on pre-trial release, Spatig has been held in custody since September 11, 2014.
The case was the result of a joint investigation of the Environmental Protection Agency, the Idaho Department of Environmental Quality, and the Madison County Sheriff’s office. It was prosecuted jointly by the U.S. Attorney’s Office and the Environmental Crimes Section of the U.S. Department of Justice.
Randolph County man convicted for role in manufacturing methamphetamineRead the Press Release
ELKINS, WEST VIRGINIA – Lee Willard Young, Jr., 34, of Beverly, West Virginia, was convicted in federal court today for his role in manufacturing methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
In April 2014, Young was discovered Randolph County, West Virginia in possession of medication containing pseudoephedrine, an ingredient commonly used to produce methamphetamine.
Kimble pled guilty today to one count of “Possession of Pseudoephedrine to be used in the Manufacture of Methamphetamine.” He faces up to 20 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Assistant U.S. Attorney Sarah Montoro prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. Magistrate Judge John S. Kaull presided.
Previously Deported Mexican National Sentenced to 80 Months in Federal Prison for Illegal ReentryRead the Press Release
ALBUQUERQUE – A previously deported felon from Mexico was sentenced today in federal court in Albuquerque, N.M., to 80 months in federal prison for his conviction for unlawfully reentering the United States. He will be deported after completing his prison sentence.
Rene Gonzalez-Chavez, 33, of Chihuahua, Mexico, was charged on Sept. 24, 2014, in a criminal complaint with illegally reentering the United States after having been convicted of an aggravated felony. Gonzalez-Chavez had previously been deported from the United States on April 28, 2010, after he was convicted in April 2006, of multiple aggravated felonies including aggravated assault with a deadly weapon on a peace officer, attempt to commit a felony, aggravated burglary with a deadly weapon, conspiracy to commit an aggravated burglary, and aggravated assault against a household member with a deadly weapon and resisting an officer.
Gonzalez-Chavez was subsequently indicted on Dec. 3, 2014, and charged with unlawful re-entry into the United States. The offense took place in Bernalillo County, N.M.
On Jan. 22, 2015, Gonzalez-Chavez pled guilty to the indictment without the benefit of a plea agreement.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the Albuquerque Police Department. Assistant U.S. Attorney Lynn Wei-Yu Wang is prosecuting this case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible.
Peoria Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
Peoria, Ill. – Seth Morris, 25, of the 1000 block of N. Glenwood, Peoria, Ill., entered a plea of guilty yesterday, in federal court, to one count of sexual exploitation of a minor, as announced by Jim Lewis, U.S. Attorney for the Central District of Illinois. Sentencing has been scheduled for Oct. 14, 2015, before U.S. District Judge Joe Billy McDade.
During the plea hearing, on June 8, Morris admitted that in mid to late 2014, he took sexually explicit photographs of himself with a young child. Morris then used his cell phone to send the images to a 14-year-old girl on the social networking service, MeetMe, and requested that the girl send him similar photos of a young child that she knew.
On Dec. 26, 2014, agents of the U.S. Secret Service and Washington Police Department executed a search warrant at Morris’s home, and Morris’s cell phone was seized. Morris admitted that the phone was used to chat with a female under the age of 18 through MeetMe and that he had sent her sexually explicit images of a minor in an effort to receive additional images of child pornography in exchange.
The statutory maximum penalty for the offense of sexual exploitation of a minor is up to 30 years in prison, and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney Ron Hanna. The charge is the result of an investigation conducted by the U.S. Secret Service and a Special Task Force Officer from the Washington Police Department.
Morris has remained in the custody of the U.S. Marshals Service since his arrest in December 2014.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Pennsylvania Man Sentenced for Illicit Sexual Conduct Charges, Receiving Child PornographyRead the Press Release
COLUMBUS – Jason C. Kozlowski, 32, of Glen Rock, Pennsylvania, was sentenced in U.S. District Court to 12 years in prison and 20 years supervised release for traveling interstate with the intent to engage in illicit sexual conduct and receiving child pornography.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Grove City Police Chief Steve Robinette, Pickaway County Sheriff Robert B. Radcliff, and members of the Franklin County Internet Crimes Against Children (ICAC) Task Force announced the plea entered into today before Chief U.S. District Judge Edmund A. Sargus, Jr.
According to court documents, on October 10, 2014, Grove City police officers observed Kozlowski in his vehicle behind a Target store nude from the waist down with a 15-year-old female.
Upon interviewing Kozlowski and the minor female, investigators discovered the two had been communicating since approximately March of 2014 by Facebook, e-mails, text messages and telephone calls. Text messages found on the phones of Kozlowski and the minor female revealed that Kozlowski had sent the girl sexually explicit messages. Kozlowski was aware of the female’s age and the laws in the state of Ohio regarding consent.
Kozlowski told law enforcement officials the 15-year-old was going to get a letter from her parents giving him permission to “be with” with the girl. The defendant admitted to driving from Pennsylvania to Ohio to pick up the female and explained they went to dinner, shopping, and then parked behind the Target store and engaged in sex acts.
Investigators discovered nude photographs of both the defendant and the victim had been exchanged vita text. They also discovered pornographic images of a different, 13-year-old female on Kozlowski’s computer.
Kozlowski pleaded guilty to traveling interstate with the intent to engage in illicit sexual conduct and receiving child pornography in February 2015.
The Franklin County ICAC Task Force is a multi-agency effort dedicated to the fight against computer facilitated crimes against children. The following agencies are members:
Franklin County Sheriff’s Office Upper Arlington Police Department
Grove City Police Department Columbus Police Department
Grandview Heights Police Department Whitehall Police Department
Hilliard Police Department Westerville Police Department
Homeland Security Investigations U.S. Secret Service
Ohio ICAC Franklin County Prosecutor's OfficeThis case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorneys Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
U.S. Attorney Stewart commended the cooperative investigation by law enforcement, as well as Assistant United States Attorneys Heather Hill and Jessica Kim, who represented the United States in this case.
Oregon Felon Sentenced to 10 Years in Federal PrisonRead the Press Release
EUGENE, Ore. – Christopher Shawn Kanatzar, 28, Springfield, Oregon, appeared before U. S. District Court Chief Judge Ann Aiken in Eugene today and was sentenced to ten years in prison. Earlier this year, Kanatzar pled guilty to being a felon in possession of a 9 mm pistol found by Springfield police in a stolen car following a high speed chase. Kanatzar and two police officers sustained injuries when he resisted arrest after the pursuit ended.
In March 2013, Kanatzar also pled guilty in an Oregon court to robbery in the first degree with a firearm. Kanatzar admitted robbing a person of their methamphetamine at gunpoint. Kanatzar is pending sentencing for that crime.
Chief Judge Aiken sentenced Kanatzar to the maximum sentence of ten years because he possessed the pistol after having been previously convicted of unlawfully using and possessing firearms, first degree burglary and first degree theft. According to court documents and statements made in court, Kanatzar’s state sentences will be served concurrently while he is in federal prison.
Kanatzar’s guilty plea, admissions and 10-year prison sentence were part of a global plea agreement with the U. S. Attorney’s Office for the District of Oregon and the Lane County District Attorney’s Office.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco and Firearms and the Springfield Police Department. The case was prosecuted by Assistant U.S. Attorney Frank R. Papagni, Jr., with the assistance of Lane County Deputy District Attorney Erik Hasselman.
North Miami Resident Pleads Guilty to Possession of Access DevicesRead the Press Release
Keven Aime, 21, of North Miami, Florida, pled guilty yesterday to one count of possession of fifteen or more access devices with the intent to defraud, in violation of Title 18, United States Code, Section 1029(a)(3) and 2.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Steve Steinberg, Chief, Aventura Police Department, made the announcement.
According to the factual proffer in support of the guilty plea, on August 24, 2012, Aime was taken into custody for driving with a suspended license and possession of marijuana. A search of the car revealed a notebook containing the personal identifying information of approximately forty-five other people, including names, occupations, dates of birth, and social security numbers.
The personal identifying information in the notebook corresponded to victims of tax refund fraud. Twenty victims had fraudulent tax returns filed in their names in 2011, and thirty-seven victims had fraudulent tax returns filed in their names in 2012. The total loss to the Internal Revenue Service was $109,628.
Aime is scheduled to be sentenced on August 26, 2015, at 1:30 p.m., before U.S. District Judge Jose E. Martinez.
Mr. Ferrer commended the investigative efforts of IRS-CI and the Aventura Police Department. This case is being prosecuted by Assistant U.S. Attorney Tonya R. Long.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
North Brookfield Man Charged with Child Enticement OffensesRead the Press Release
BOSTON – A North Brookfield man was charged in U.S. District Court in Worcester yesterday with child pornography.
Matthew Clem, 30, was charged by complaint with production of child pornography, enticement of a minor to engage in unlawful sexual conduct, and receipt of child pornography.
As alleged in the charging documents, beginning in October 2014, law enforcement officers learned that an individual who identified himself as “Matt” on “Kik Messenger,” (Kik) an instant messaging app, had engaged in sexualized chats with a 15-year-old girl. Furthermore, “Matt” had solicited and received unclothed images from the minor victim and sent images depicting his genitals. After further investigation, law enforcement officers determined that the Internet IP address associated with the Kik account belonged to Clem. In March 2015, a search warrant was executed at Clem’s home. According to the charging documents, Clem was interviewed by law enforcement officers following the execution of the search warrant and admitted to utilizing numerous Internet-based messaging systems to solicit numerous females as young as 14-years-old and acknowledged receiving numerous pornographic images from those females.
Based upon Clem’s admissions, a second minor victim was identified. This victim began communicating with Clem in 2012 when she was 14-years-old. The affidavit alleges that this second victim engaged in sexualized video chats at Clem’s request and that Clem engaged in sexual intercourse when this victim was under the age of 16.
The charge of producing child pornography provides a mandatory minimum sentence of 15 years and no greater than a lifetime in prison, five years of supervised release, and a fine of $250,000. The charge of enticing a minor provides a mandatory minimum sentence of 10 years and no greater than a lifetime in prison, five years of supervised release, and a fine of $250,000. The charge of receipt of child pornography provides a mandatory minimum sentence of five years and no greater than 20 years in prison, a minimum of five years and no greater than a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Worcester County District Attorney Joseph D. Early, Jr.; Bruce M. Foucart, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; and North Brookfield Police Chief Aram Thomasian, Jr., made the announcement. The case is being prosecuted by Assistant U.S. Attorney Mark Grady of Ortiz’s Worcester Branch Office.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Nine Individuals Indicted in June 2015 Federal Grand JuryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office announced today the results of the June 2015 Federal Grand Jury.
“The following named individuals have been charged with a federal crime or crimes by the return of an indictment by the Grand Jury. A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
CRYSTAL DEANN AIRINGTON, age 40, of Durant, Oklahoma
THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS
The Indictment alleges that from in or about January, 2012 to on or about December 15, 2012, in the Eastern District of Oklahoma, CRYSTAL DEANN AIRINGTON, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
JIMMY LEWIS PERKINS, age 50, of Idabel, Oklahoma
FAILURE TO REGISTER AS SEX OFFENDER
The Indictment alleges that from a date uncertain in or about 2013, the exact date being unknown to the Grand Jury, until on or about March 12, 2015, in the Eastern District of Oklahoma, and elsewhere, JIMMY LEWIS PERKINS, defendant herein, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received a felony conviction from the State of Oklahoma, in McCurtain County, on or about September 8, 2004, for the offense of Lewd Molestation, traveled in interstate and foreign commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
The charge arose from an investigation by the United States Marshal Service. The charge is in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Edward Snow
STANLEY RAY MIXON, age 39, of Haworth, Oklahoma
USE OF TELEPHONE TO MAKE BOMB THREAT
The Indictment alleges that on or about April 2, 2015, in the Eastern District of Oklahoma, the Defendant, STANLEY RAY MIXON, through use of a telephone willfully made a threat to unlawfully damage and destroy a building, to-wit: the United States Post Office in Idabel, Oklahoma, by means of an explosive, in and affecting interstate commerce.
The charge arose from an investigation by the McCurtain County Sheriff’s Department and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Section 844(e), punishable by up to 10 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Rob Wallace.
STEVEN KYLE DUDLEY, age 21, of Calera, Oklahoma
THEFT BY OFFICERS OR EMPLOYEES OF GAMING ESTABLISHMENT ON INDIAN LANDS
The Indictment alleges that on or about July 8, 2013 until July 21, 2013, in the Eastern District of Oklahoma, STEVEN KYLE DUDLEY, defendant herein, while an employee of the Choctaw Nation Casino and Resort, did embezzle, abstract, purloin, willfully misapply, and take and carry away in excess of $1,000.00 of moneys belonging to the Choctaw Nation Casino and Resort, an Indian gaming establishment operated by the Choctaw Nation in Indian Country, pursuant to an ordinance or resolution approved by the National Indian Gaming Commission.
The charge arose from an investigation by the Choctaw Nation Tribal Police and the Federal Bureau of Investigation. The charge is in violation of Title 18, United States Code, Sections 1168(b) and 2, punishable by not more than 20 years imprisonment, a fine of up to $250,000.00 or both.
Assistant United States Attorney Edward Snow
CHELBI GEORGE, age 42, of Tulsa, Oklahoma
POSSESSION OF A COUNTERFEIT OBLIGATION
The Indictment alleges that on or about May 5, 2015, in the Eastern District of Oklahoma, the Defendant, CHELBI GEORGE, did with intent to defraud, possess counterfeit obligations of the United States. The charge arose from an investigation by the Muskogee Police Department and the United States Secret Service.
The charges are in violation of Title 18, United States Code, Section 472, punishable by not more than 20 years imprisonment, up to a $250,000.00 fine or both.
Assistant United States Attorney Melody Nelson
KEVIN BERNARD GREEN, age 35, of Muskogee, Oklahoma
ANDREANA LYNN HILL, age 37, of Muskogee, Oklahoma
ELIJAH ALFRED MAYES, JR., age 35, of Muskogee, Oklahoma
JAZZ ELLINGTON PIERCE, age 27, of Muskogee, Oklahoma
DRUG CONSPIRACY
USE OF A COMMUNICATION DEVICE IN FURTHERANCE OF DRUG TRAFFICKING
DRUG FORFEITUREThe Indictment alleges that beginning in or about 2005, the exact date being unknown to the Grand Jury, and continuing until on or about May 8, 2015, within the Eastern District of Oklahoma and elsewhere, the defendants did knowingly and intentionally conspire, confederate and agree with each other, and with others known and unknown to the Grand Jury, to possess with intent to distribute Schedule II controlled substances and did knowingly and intentionally, and unlawfully used a communication facility, that is: telephones (cellular or otherwise), in committing, causing and facilitating acts constituting felonies under Title 21, United States Code, Sections 841 and 846, in that the defendants used the telephones to discuss various matters concerning conspiracy, distribution of cocaine and cocaine base and possession with intent to distribute cocaine and cocaine base, a Schedule II controlled substance. A Drug Forfeiture charge is also included in the Indictment.
The charges are a result of an investigation by the Muskogee Police Department and the Oklahoma Bureau of Narcotics. The charges are in violation of Title 21, United States Code, Section 846, punishable by not less than 10 years imprisonment; Title 21, United States Code, Section 843(b), punishable by not more than 4 years imprisonment and Title 21, United States Code, Section 853.
Assistant United States Attorney Shannon Henson.
New Hampshire Man Pleads Guilty to Social Security FraudRead the Press Release
CONCORD, N.H. –Craig Luksza, 34, of Chichester, pleaded guilty today in United States District Court for the District of New Hampshire to Social Security Fraud, announced Acting United States Attorney Donald Feith.
In July 2010, Luksza began receiving Social Security disability benefits. Shortly after he applied for benefits in December 2009, however, Luksza returned to work full-time for a construction company. Luksza’s income from this job would have rendered him ineligible to receive disability benefits. Luksza did not report this work activity to the Social Security Administration (SSA) and, in fact, in December 2013, he falsely told SSA that he had not worked since December 2008. In July 2014, Luksza admitted to investigators that he concealed his work activity and income from SSA. As a result of his concealment, Luksza received disability benefits that he would not have received if Social Security had been aware of his actual work activity and income. The government alleges that Luksza fraudulently received $71,180.50 in disability benefits.
“Program benefits fraud is a high enforcement priority for this office and one we are uniquely positioned to prosecute,” Acting U.S. Attorney Feith said. “Many citizens rely on the assistance provided by benefit programs such as Social Security disability benefits to meet their daily needs. Those who cheat the system jeopardize the financial security of their fellow citizens who are legitimately receiving such benefits, and threaten the fiscal stability of the entire program. We will work hard to identify the cheaters, prosecute them, and make sure that they are ordered to repay the benefits they received through fraud.”
Luksza is facing a maximum sentence of five years in prison and is scheduled to be sentenced on September 29, 2015. He was released on conditions pending sentencing.
The case was investigated by the Social Security Administration’s Office of the Inspector General and prosecuted by Special Assistant United States Attorney Karen Burzycki.
New Exhibit Now Open at Crime Museum Takes on Wildlife TraffickingRead the Press Release
The Crime Museum announces the wildlife trafficking exhibit is now officially open. The exhibit, titled “Ivory, Tortoise Shell & Fur: The Ugly Truth of Wildlife Trafficking,” was unveiled to a large group made up of celebrities, government officials, and journalists who came together to support this important cause and see and learn more about wildlife trafficking. Following the unveiling, the exhibit is now open to the public, who are invited to attend and learn about the horrors of the wildlife trafficking industry that plagues the world.
“We are excited to be bringing this information to the masses,” states Janine Vaccarello, chief operating officer of the Crime Museum. “This is truly a big step in the right direction when it comes to curbing the illegal wildlife trafficking industry. The more the public learns about it, the more empowered they will be to help end it.”
Wildlife trafficking is an issue that President Obama has spoken about, calling it a security issue, as well as celebrities, such as Russell Simmons, who are speaking out about the atrocities that are decimating particular animal populations around the world.
“Interpol and its Environmental Security section are committed to the protection of wildlife, natural resources, and biodiversity around the world,” stated Interpol Washington Director Shawn A. Bray. “Interpol and its law enforcement partners in all 190 member countries, including Interpol Washington, will continue building partnerships and awareness of environmental crime, as seen here tonight with the opening of this exhibit. Together, we will ensure we win the fight against transnational environmental crime.”
Many people are unaware of how critical the situation has become, yet the statistics are alarming. It’s estimated that 97 percent of the world’s tigers have been lost in the last century, 76 percent of elephants have been lost during the last 13 years, and over 1,200 rhinoceros were killed last year alone. These animal populations have been depleted to supply black market demand for jewelry, souvenirs, and natural medicines and status symbols such as shark fin soup.
"The exhibit shows the horrible suffering inflicted on individual animals for illegal and unnecessary trinkets," says Beth Allgood, US Campaigns Director at IFAW. "Raising awareness is a critical step in making the world safer for wildlife."
“It could not have been a better event,” shares Dr. Jennifer Sevin, Ph.D., president of Youth Environmental Programs, Inc. “There were excellent speakers, a great venue, and the opening of an important exhibit on World Environment Day. As many of the speakers at the opening mentioned, the Crime Museum is an excellent venue to bring awareness of wildlife trafficking to the public.”
The Wildlife Trafficking exhibit will be at the Crime Museum from June 2015 through February 2016, giving visitors an opportunity to see if they are contributing to the problem, and how they can help. The Crime Museum also offers a variety of other temporary and traveling exhibits, summer camp programs, walking tours, educational hands-on exhibits, and more. For more information to purchase tickets, visit their site at www.crimemuseum.org. To get involved, use and search for #ProtectOurWildlife and #SavetheElephants, or buy an awareness t-shirt, with proceeds going to the Youth Environmental Programs.
This exhibit is made possible by Freeland Foundation, International Fund for Animal Welfare, INTERPOL, Kashmir World Foundation, U.S. Department of State, U.S. Fish and Wildlife Service, WildAid, Wildlife Trust of India and Youth Environmental Programs.
About the Crime Museum
Crime Museum is located in Washington D.C. The mission is to provide guests of all ages with memorable insight into the issues of crime, crime fighting, and the consequences of committing a crime in America, through an interactive, entertaining, and educational experience. The museum offers walking tours, summer camps, galleries, a crime library, temporary and traveling exhibits, and more. For additional information, visit www.crimemuseum.org or follow the museum on Facebook and Twitter.Massachusetts Man Pleads Guilty to Firearms ChargesRead the Press Release
CONCORD, N.H. – Jose M. Camara, Jr., 29, of Haverhill, Massachusetts, pleaded guilty in United States District Court for the District of New Hampshire to conspiracy to make a false statement during the acquisition of a firearm and making false statements during the acquisition of firearms, announced Acting United States Attorney Donald Feith.
Beginning in August 2014, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives in Boston were involved in an investigation of the illegal purchase and sale of firearms. During the investigation, ATF agents utilized an informant (CI-1) to purchase firearms from Jason Martinez. Martinez has pleaded guilty to conspiracy to make a false statement during the acquisition of a firearm and is awaiting sentencing.
Martinez and others solicited Camara to purchase firearms because Camara possessed a New Hampshire identification and could provide that identification to the federal firearms licensee making the sale. Camara agreed to purchase the firearms for Martinez and others. From October 31, 2014 through November 8, 2014, on three separate occasions, Camara purchased eight firearms in New Hampshire. On November 26, 2014, Camara attempted to purchase three additional firearms but was denied because ATF was alerted to the purchase. During each of the firearm purchases, Camara falsely claimed that he was the actual purchaser of the firearms when in reality he was purchasing the firearms for Martinez and others.
“The illegal purchase of firearms thwarts the regulatory system that was put in place to ensure that firearms do not end up in the hands of those individuals prohibited from possessing firearms” stated Acting United States Attorney Donald Feith. “This case demonstrates this office’s commitment to work with law enforcement to investigate and to prosecute those who facilitate the illegal possession of firearms. If you lie and buy, you will be prosecuted.”
Camara faces a maximum sentence of ten years imprisonment. Camara is scheduled to be sentenced on September 22, 2015. Camara was detained pending sentencing.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and is being prosecuted by Assistant U.S. Attorney Debra M. Walsh.
Marion Couple Pleads Guilty to Enticement of a MinorRead the Press Release
A husband and wife who enticed a minor to engage in criminal sexual activity pled guilty in federal court in Cedar Rapids.
Michael Darling, age 20, and Jennifer Darling, age 27, both of Marion, Iowa, were convicted of one count of enticement of a minor.
At a plea hearing on June 4, 2015, Michael Darling admitted that, between January and March 2015, he persuaded, induced, or enticed a 15-year-old girl to engage in sexual activity. At a plea hearing on June 8, 2015, Jennifer Darling admitted that, during the same time period, she persuaded, induced, or enticed the same girl to engage in sexual activity.
Sentencings before United States District Court Chief Judge Linda R. Reade will be set after presentence reports are prepared. Jennifer Darling was taken into custody of the United States Marshal after her guilty plea; both she and Michael Darling will remain in custody pending sentencing. Each defendant faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, a $100 special assessment, and supervised release for 5 years to life following imprisonment.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation and the Jones County Sheriff’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 15-39.
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Man sentenced for extortion scheme at arch mineRead the Press Release
MAN SENTENCED FOR EXTORTION SCHEME AT ARCH MINE
Charleston, W.Va. -- Former Mountain Laurel Mining Complex General Manager David E. Runyon, 45, of Delbarton, Mingo County, West Virginia, was sentenced today to 41 months in federal prison and ordered to pay a $15,000 fine for extortion and tax evasion, announced United States Attorney Booth Goodwin.
Runyon admitted that as general manager of the mining complex, he participated in and benefitted from a number of extortion schemes where he and other Arch Coal employees were paid cash kickbacks from complicit Mountain Laurel vendors in exchange for the vendors’ continued business at Mountain Laurel. The cash kickbacks to Arch Coal employees totaled more than 1.8 million dollars between 2006 through 2013. These kickbacks included:
- The Rebuild Kickback Scheme, where Runyon and others received kickbacks from companies engaged in rebuilding mine equipment at Mountain Laurel. These companies included Tri-State Mine Service, Inc., owned by Scott Ellis and later joined by Stephen Herndon after he left employment at Arch Coal, Carter Sales and Service and Apex Mining Construction and Repair, Inc, owned by Donald Carter. Ellis, Carter, and later Herndon understood that they would no longer be vendors for Mountain Laurel if they stopped paying kickbacks.
- The Miner/Bolter Repair Kickback Scheme, where Runyon and others received kickbacks from Ronald Barnette, who owned Mining Repair Specialist, Inc. (“MRS”). MRS performed rebuild and repair work on mining equipment at Mountain Laurel. Barnette understood if he did not pay the kickbacks, MRS would no longer get rebuild work at Mountain Laurel.
- The Construction Work Kickback Scheme, where Runyon received kickbacks from Alvis Porter, who operated Quality Oil, Inc. d/b/a Southern Construction of Logan. Porter’s company performed a variety of construction services at Mountain Laurel, and Porter paid the kickbacks to keep the Mountain Laurel work.
- The Contract Labor Kickback Scheme, where Runyon received kickbacks from David Herndon. David Herndon owned and operated MAC Mine Service, Inc., which provided contract labor at Mountain Laurel. David Herndon paid the kickbacks because he believed that he would lose the business at Mountain Laurel if the kickbacks were not paid.
Runyon admitted that he received approximately $1 million through these kickback schemes. He was ordered to pay restitution in the amount of $1 million to Arch Coal and $325,485 to the Internal Revenue Service.
“The payment of kickbacks is nothing more than negotiated bribery. Kickbacks undermine fair and legitimate business practices, eliminate competition and inevitably impact costs passed along to consumers. These are not victimless crimes, because in the end we all lose when the free market is compromised by such corruption,” said United States Attorney Booth Goodwin.
Today’s charge stems from an investigation being conducted by the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigations, United States Postal Inspection Service, and the West Virginia State Police. Assistant United States Attorney Meredith George Thomas is in charge of the prosecution.
Man Sentenced in Bank Robbery SpreeRead the Press Release
BOSTON – A Boston area man was sentenced yesterday for robbing three banks in June 2014 and stealing over $18,000.
Edward Stone, 26, was sentenced by U.S. District Court Judge Denise J. Casper to 80 months in prison, three years of supervised release, and restitution of $18,257. In March 2015, Stone pleaded guilty to three counts of bank robbery.
On June 7, 2014, Stone walked into a TD Bank in Braintree holding a notebook and approached the bank teller. He showed the teller a written note demanding money in “Big Bills” [sic]. While speaking to the teller, he also threatened to “blow [her] head off” if she did not follow his instructions. Stone left the bank with $7,363 moments after he entered.
On June 12, 2014, Stone entered a TD Bank in Hingham at 11:24 a.m. Once again, he presented a note demanding money and told the teller, “This is a robbery. Give me the money.” Stone stole $3,796 from the bank.
On June 20, 2014, Stone robbed the TD Bank in Braintree for the second time. Stone approached the same teller he victimized on June 7 and once again demanded money. Stone left the bank forty seconds after entering with $7,098 in cash.
Following each robbery, the tellers and other witnesses identified Stone from a photo array.
Police arrested him on June 25, 2014. After his arrest, Stone gave a videotaped confession in which he admitted to all three robberies.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police; Chief Russell Jenkins of the Braintree Police Department; and Chief Michael Peraino of the Hingham Police Department, made the announcement. This case was prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Man Indicted for Drug Conspiracy, Illegal Firearm Possession and for Murder-For-HireRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal grand jury in Rochester has returned a four count indictment charging Guarionex Rivera, 27, of Clifton Springs, NY, with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, possession with intent to distribute five hundred grams or more of cocaine, possession of a firearm in furtherance of the drug crime, and using interstate communications facilities with intent to commit a murder for hire.
Assistant U.S. Attorney Everardo A. Rodriguez, who is handling the case, stated that the indictment is the result of a lengthy investigation of the defendant and others for cocaine distribution. During the course of the investigation, the Drug Enforcement Administration used a confidential informant to purchase 62 grams of cocaine from Rivera. The investigation culminated on May 22, 2015 when the defendant was arrested by law enforcement officers as they were preparing to drive to sell the informant a larger quantity of cocaine. At the time of their arrest, Rivera and another individual had in their possession four kilograms of cocaine, a loaded .45 caliber handgun, approximately $18,790 in cash, an electronic money counter and other drug paraphernalia.
The indictment further charges that, also in May, the defendant used cell phones and the internet in an effort to hire someone to assist in murdering a man for stealing hundreds of thousands of dollars in drug proceeds from Rivera. The defendant contacted the informant, among others, for assistance in finding and killing the thief in exchange for $40,000. The informant put Rivera in touch with an undercover officer who played the role of someone willing to help the defendant further his scheme.
The indictment also seeks forfeiture of two guns seized during the investigation, the $18,790 in cash and a BMW automobile which Rivera used while engaging in the charged criminal activity.
The indictment is the result of an investigation headed by the U.S. Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division, with assistance from the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge Boston Division, the United States Marshal’s Service, under the Direction of U.S. Marshal Charles Salina, the Ontario County Sheriff’s Office, under the direction of Sheriff Philip Povero, the Macedon Police Department under the direction of Chief John Colella, and the Greater Rochester Area Narcotics Enforcement Team.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Madison County Man Gets 140 Years in Prison for Producing, Possessing and Distributing Child PornographyRead the Press Release
HUNTSVILLE – A federal judge today sentenced a Madison County man to 140 years in prison on multiple charges of producing child pornography, some of it taken with cameras he hid in the bathrooms of three Huntsville-area businesses, announced U.S. Attorney Joyce White Vance, Homeland Security Investigations Special Agent in Charge Raymond R. Parmer Jr., Alabama Law Enforcement Agency Sec. Spencer Collier and Etowah County Sheriff Todd Entrekin.
U.S. District Judge Madeline H. Haikala sentenced JEREMY JOSEPH NELSON, 42, for producing child pornography between 2012 and 2014, possessing child pornography depicting children under age 12, and distributing child pornography. Nelson pleaded guilty to the charges in February.
A sentencing document filed by the government on Monday said Nelson possessed more than 1 million images of child pornography and traded thousands of those images with other sex offenders. The document also said that Nelson has exploited hundreds of children in Alabama, and that he "produced his own images of child pornography depicting children in Alabama for his own sexual gratification and for trading."
"This defendant called himself a monster and should spend the rest of his life in prison," the government document said.
In Nelson's guilty plea, he acknowledged that for several years he used hidden cameras surreptitiously to record underage girls in the bathroom of his residence. He also acknowledged that, while working as a janitor, he had hidden cameras in the employee bathroom of a Huntsville television news studio, in the customer bathroom of a Cadillac dealership, and in the bathroom and changing rooms of a dance studio.
Nelson pleaded guilty to four counts of using or causing a minor to engage in sexually explicit conduct so he could record the conduct. One of those counts stated that the crime took place at a Huntsville dance studio. Nelson also pleaded guilty to possessing child pornography on computer, computer disk or videotape, and to distributing the pornography over the Internet.
The Department of Homeland Security and the Alabama State Bureau of Investigation investigated the case, which Assistant U.S. Attorneys Jacquelyn Hutzell and Daniel Fortune are prosecuting.
Las Cruces Resident Pleads Guilty to Federal Narcotics Trafficking ChargesRead the Press Release
ALBUQUERQUE – Christopher J. Cleveland, 35, a resident of Las Cruces, N.M., pled guilty today in federal court to methamphetamine trafficking charges under a plea agreement with the U.S. Attorney’s Office.
Cleveland and co-defendant Eric G. Acosta, 28, also of Las Cruces, were arrested in July 2014, on a criminal complaint charging them with possession of methamphetamine with intent to distribute, using a firearm in furtherance of a drug trafficking crime and possession of a firearm by a convicted felon. The complaint alleged that during a routine traffic stop on June 23, 2014, officers of the Las Cruces Police Department discovered approximately 889.2 grams of methamphetamine, a firearm and drug paraphernalia inside a vehicle driven by Acosta and in which Cleveland was a passenger. It further alleged that Cleveland and Acosta had traveled from Arizona, where they obtained the methamphetamine, to Las Cruces in Doña Ana County, N.M., where they intended to distribute the drugs.
An indictment subsequently was filed on Oct. 16, 2014, charging Acosta and Cleveland with a methamphetamine trafficking conspiracy and possession of methamphetamine with intent to distribute. The indictment also charged each of the two men with being a felon in possession of a firearm. The two men were charged with committing these crimes on June 23, 2014, in Doña Ana County. At the time, Acosta and Cleveland each was prohibited from possessing firearms or ammunition because each had previously been convicted a felony offense.
During today’s proceedings, Cleveland admitted to conspiring with Acosta to possess methamphetamine with intent to distribute and possession of methamphetamine with intent to distribute on June 23, 2014, in Doña Ana County.
On May 14, 2015, Acosta pled guilty to the conspiracy charge, the substantive methamphetamine trafficking charge, and to being a felon in possession of a firearm. Acosta entered his guilty plea without the benefit of a plea agreement.
At sentencing, Acosta and Cleveland each face a statutory mandatory minimum of ten years in federal prison. Both men remain in custody pending sentencing hearings, which have yet to be scheduled.
This case was investigated by the Las Cruces office of the FBI and the HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force and is being prosecuted by Assistant U.S. Attorney Maria Y. Armijo of the U.S. Attorney’s Las Cruces Branch Office.
The HIDTA Regional Interagency Drug Task Force/Metro Narcotics Task Force is comprised of officers from the Las Cruces Police Department, the Doña Ana County Sheriff’s Office, the FBI, HSI and the New Mexico State Police. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Kansas Man Charged with Exporting Firearms to Overseas PurchasersRead the Press Release
KANSAS CITY, KAN. – A Kansas man is charged in an eighteen-count indictment unsealed today with removing, altering or obliterating manufacturer’s serial numbers, causing other individuals to make straw purchases of firearms and exporting firearms overseas, U.S. Attorney Barry Grissom said.
Michael Andrew Ryan, also known as “Brad Jones” and “GunRunner,” 35, of Manhattan, Kan., was charged in an indictment filed on June 3, 2015, in Topeka with knowingly making false statements to licensed firearms dealers; possession of firearms from which the manufacturer’s serial numbers had been removed, altered and obliterated; and exporting and/or attempting to export these firearms in different packages from the United States to individuals located in other countries.
According to allegations in the indictment, Ryan knowingly possessed a total of nine guns, including a Glock model 27 .40 caliber pistol, from which the manufacturer's serial numbers had been removed, altered and obliterated, 318 rounds of assorted ammunition and eight magazines, which had been shipped and transported in interstate and foreign commerce in violation of federal law.
According to allegations in the indictment, Ryan had also exported and attempted to export these firearms in different packages from the United States to individuals located in Cork, Ireland; Mallow, Ireland; Pinner, England; Edinburgh, Scotland; and Victoria, Australia.
The charges contained in the indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Kansas City Field Division; Department of Homeland Security’s Customs and Border Protection and Homeland Security Investigations Topeka Divisions; the Manhattan Police Department and Riley County, Kan., Police Department; with assistance from the ATF Washington D.C. Division. The case is being prosecuted by Assistant U.S. Attorney Greg Hough of the District of Kansas, Senior Counsels Marie-Flore Johnson and Gavin Corn of the Criminal Division’s Computer Crime and Intellectual Property Section.
Judge Tanya Walton Pratt sentences Bloomington public official to federal prisonRead the Press Release
INDIANAPOLIS – United States Attorney Josh J. Minkler announced today the sentencing of a former Bloomington public official for one count of conspiracy to commit wire fraud and 10 counts of wire fraud. U.S. District Judge Tanya Walton Pratt sentenced Justin Wykoff, 44, Bloomington, to 55 months in federal prison today.
“Public officials are trusted to serve the people not to serve themselves,” said Minkler. “Those who choose to line their pockets using money from the public payroll can expect the full force of the federal prosecution hammer. Judge Walton Pratt’s sentence sends a strong message; if you choose to abuse the public’s trust as a public official, you will go to prison. There will be no probation, no half-way house, no suspended sentence, no parole. The sentence will be prison.”
Wykoff, was the Manager for Engineering Services for the City of Bloomington and pled guilty in federal court in March 2015, to 11 counts of wire fraud. He was responsible for bidding and awarding contracts for public works projects in the City of Bloomington, like road paving and sidewalk construction. Between April 2011 to February 2014, Wykoff solicited and received substantial cash bribes and kickbacks from Roger Hardin and Zach Hardin, who operated a company called Reliable Concrete and Construction. In exchange for the kickbacks, Wykoff assisted the Hardins in obtaining over $800,000 in city construction contracts and payments for Reliable Concrete.
Wykoff estimated project costs and prepared bid proposals, using his inside information to ensure Reliable Concrete was the low bidder. In some cases, Wykoff awarded city contracts to Reliable Concrete outright without obtaining bids from other contractors. Wykoff also authorized city payments to Reliable Concrete totaling approximately $807,000. Of that amount, approximately $300,000 was for work that was never completed by Reliable Concrete.
Wykoff and the Hardins took steps to conceal their scheme by creating false Reliable Concrete bid proposals after the fact. On February 17, 2014, Wykoff went to Roger Hardin’s home and created multiple bid proposal forms for projects that the City of Bloomington had already paid Reliable Concrete for – even though Reliable Concrete had not performed the work. The forms were backdated to coincide with the dates that the work was supposed to have taken place. Wykoff initialed or signed these forms as if he had approved the bids and then planted copies of the forms in his office in an attempt to further conceal the scheme.
Roger Hardin was sentenced to 33 months for his role in the scheme. His son, Zachary was sentenced to 12 months. All three are equally responsible for restitution of over $400,000 to the City of Bloomington.
The investigation was conducted by the FBI and the Bloomington Police Department.
FBI Special Agent in Charge W. Jay Abbott stated, “Public corruption is one of the FBI’s top investigative priorities and FBI Agents remain committed to pursuing those individuals that violate the public’s trust.”
According to Senior Litigation Counsel Steve DeBrota and Assistant United States Attorney Nick Linder, who are prosecuting the case for the government, Wykoff must serve 3 years of supervised release after his sentence.
Iowa Man Indicted for Making Threats Targeting Boston-Based Islamic Cultural CenterRead the Press Release
BOSTON – An Iowa man was indicted today on charges of threatening to shoot and kill Muslims by posting threats on the Facebook page of an Islamic organization in Boston.
Gerald Wayne Ledford, 57, of Clinton, Iowa, was indicted for transmitting in interstate or foreign commerce a communication containing a threat to injure the person of another. He was arrested in Iowa on Wednesday, June 3, 2015, and is scheduled to appear in Boston on June 24, 2015 at 2:15 p.m.
Prior court filings allege that on Oct.19, 2014, Ledford threatened the Islamic Society of Boston Cultural Center (ISBCC), a cultural center that offers a mosque and a variety of educational, spiritual, and social services to Muslims in New England. The indictment alleges that Ledford posted two threats on the ISBCC’s Facebook page. One post threatened, “Mohamed was a child rapist .a murderer and molester.you all will go to hell with you’re father satan..we will destroy you here and in your’re s**t hole countrys.” The second post consisted of a photograph of a man bearing a long gun with the caption, “This is for you.followers of the piece of s**t Mohamed …” The indictment further alleges that Ledford intended these posts to threaten the ISBCC and its members, and with knowledge that they would be viewed as threats.
Although prior filings allege that the charged threats were posted on the Facebook page of the ISBCC as the intended target, they also allege that Ledford’s own Facebook page contains additional relevant posts. For example, on or about Oct. 22, 2014, apparently reacting to news reports of shootings by a recent convert to Islam in Canada, Ledford allegedly posted, “Why can't the American and Canadian gov's just admit that a person with Islamic tendencies be called a Islamic terrorist!!” In another example, on Feb. 13, 2015, apparently reacting to news reports about the murder of three Muslim students of the University of North Carolina, Ledford allegedly posted, “Wow a white man kills three islamists and it’s a hate crime?Good job brother! [aggressive emoticon] Now we only have to take 999999 more of there innocent people!!! An eye for a eye,!!!”
The charging statute provides a sentence of no greater than five years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys S. Theodore Merritt and Scott L. Garland of Ortiz’s Civil Rights Enforcement Team.
The details contained in the indictment and prior court filings are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Hidalgo Man Gets Lengthy Sentence for Smuggling MethRead the Press Release
McALLEN, Texas – Manuel de la Cruz Jr., 32, has been ordered to federal prison following his conviction for conspiring to possess with the intent to distribute nearly 11 kilograms of methamphetamine, announced U.S. Attorney Kenneth Magidson. De la Cruz, a U.S. citizen from Hidalgo, pleaded guilty Feb. 2, 2015.
Today, visiting U.S. District Judge Marina Garcia Marmolejo sentenced de la Cruz to 150 months in federal prison to be immediately followed by five years of supervised release. In handing down the sentence, Judge Marmolejo discussed de la Cruz’s involvement in a DWI wreck where his children were passengers and his involvement in further drug-related activity.
On Sep. 24, 2013, de la Cruz was traveling north on U.S. Highway 281 in Brooks County when he was stopped for a traffic violation. A subsequent search of his vehicle led to the discovery of approximately 11 kilograms of methamphetamine. He initially claimed to be traveling for work, but later admitted being paid $1,500 to transport the narcotics.
De la Cruz has been in custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation by Homeland Security Investigations, Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorney Joseph Leonard is prosecuting the case.
Grant County man convicted of embezzling more than $100,000 in government benefitsRead the Press Release
ELKINS, WEST VIRGINIA – John Fitsgerald Kimble, 52, of, Petersburg, West Virginia, was convicted today of unlawfully collecting more than $100,000 in government benefits, United States Attorney William J. Ihlenfeld, II, announced.
Kimble’s wife passed away in April 2003. Kimble began to collect Title II Social Security and Widow with Child benefits from the Social Security Administration. He was entitled to receive these benefits so long as the couple’s surviving child lived with him. In May 2003, Kimble transferred custody of the child to a relative. As a result, Kimble was no longer entitled to collect the aforementioned government benefits. Between 2003 and 2013, Kimble unlawfully collected $184,814 in social security benefits.
Kimble pled guilty today to one count of “Theft of Government Money.” He faces up to 10 years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Assistant U.S. Attorney Michael Stein prosecuted the case on behalf of the government. The United States Social Security Administration Office of Inspector General led the inquiry.
U.S. Magistrate Judge John S. Kaull presided.
Four Mexican Nationals Indicted for Meth, Nearly Eight Kilos Seized by ATFRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that four Mexican nationals were indicted by a federal grand jury today, in two separate but related cases, for their roles in distributing large amounts of methamphetamine in Jackson County, Mo., and elsewhere.
The indictments, returned by a federal grand jury in Kansas City, Mo., are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives into the distribution of large quantities of methamphetamine. In the course of the investigation, ATF agents seized nearly eight kilograms of methamphetamine.
The indictments replace separate federal criminal complaints that were filed on May 21, 2015.
USA v. Santana-Martinez, et al.
Artemio Santana-Martinez, 26, of Oakland, Calif., and Antonio Aguilar-Reyes, 39, of Boulevard, Texas, both of whom are citizens of Mexico, are charged with aiding and abetting each other to possess methamphetamine with the intent to distribute on May 20, 2015.
According to an affidavit filed in support of the original criminal complaint, a cooperating defendant (who is not identified in court documents) told agents that one of his/her suppliers, later identified as Santana-Martinez, was a kilogram-level methamphetamine dealer and that the cooperating defendant had been purchasing large quantities of methamphetamine from this source for several months.
On May 20, 2015, the cooperating defendant (working under the direction of ATF agents) contacted Santana-Martinez and ordered a kilogram of methamphetamine to be delivered to an Independence, Mo., residence. That afternoon, the affidavit says, Santana-Martinez and Aguilar-Reyes arrived at the Independence residence and were arrested. Agents searched their vehicle and seized two kilograms of methamphetamine, four cell phones and a small bound composition book which appeared to be a drug ledger (in Spanish). Agents also seized $800 from Aguilar-Reyes and $89 from Santana-Martinez.
USA v. Garcia-Miranda, et al.
Jorge Garcia-Miranda, 29, and Abel Gonzalez-Jimenez, 44, both of whom are Mexican nationals with unknown addresses, were charged with participating in a conspiracy to distribute methamphetamine in Jackson County and elsewhere between Dec. 14, 2014, and May 1, 2015.
Garcia-Miranda and Gonzalez-Jimenez were arrested on May 20, 2015, in their room at a Mission, Kan., hotel, where federal agents seized approximately 5.7 kilograms of methamphetamine.
According to an affidavit filed in support of the original criminal complaint, a cooperating defendant (working under the direction of ATF agents) placed an order for a kilogram of methamphetamine from one of his/her suppliers (who is not identified in court documents). Agents had previously observed the cooperating defendant purchase approximately 2.5 kilograms of methamphetamine from this supplier.
Agents followed the supplier to the Mission hotel, then pulled him over in a traffic stop after he/she left the hotel. He/she allegedly told officers that Gonzalez-Jimenez, who had a room at the hotel, was supposed to obtain methamphetamine for him to sell to the cooperating defendant. However, the affidavit says, Gonzalez-Jimenez was “cleaning” the methamphetamine so it wouldn’t be available until the following day. “Cleaning” methamphetamine involves using dangerous and flammable chemicals, including acetone.
When agents knocked on the door of the hotel room, Garcia-Miranda opened the door but attempted to slam it shut as soon as he realized they were law enforcement officers. Agents prevented the door from being shut and detected a strong acetone odor coming from inside the room. A large quantity of methamphetamine was in the process of being “cleaned” in the hotel room, the affidavit says. Agents also observed acetone being heated on the stove and a lit candle. Certified decontamination agents removed the toxic fumes from the room to protect the agents and hotel guests.
Dickinson cautioned that the charges contained in these indictments are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
These cases are being prosecuted by Assistant U.S. Attorney Stefan C. Hughes. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Former U.S. Army Specialist Pleads Guilty to Taking a Bribe While Deployed in AfghanistanRead the Press Release
A former specialist with the U.S. Army pleaded guilty to accepting a bribe from an Afghan truck driver at Forward Operating Base Gardez, Afghanistan (FOB Gardez), in exchange for allowing the driver to take thousands of gallons of fuel from the base for resale on the black market. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty before U.S. District Court Judge Beth L. Freeman of the Northern District of California to one count of bribery of a public official.
According to admissions made in conjunction with his guilty plea, in exchange for $20,000 in cash, Tran permitted a local Afghan fuel truck to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning from deployment, he purchased a 2010 Dodge Challenger with the cash derived from the bribe.
In addition, Tran admitted to accepting at least $1,000 in cash from two other members of his unit, U.S. Army sergeants James Edward Norris and Seneca Hampton, in exchange for Tran agreeing not to report them for also taking bribes for fuel. Both Norris and Hampton previously pleaded guilty to their roles in the scheme. On May 21, 2015, Norris was sentenced to serve 51 months in prison. Hampton is scheduled to be sentenced on July 28, 2015.
Pursuant to his plea agreement, Tran agreed to forfeit the proceeds he received from the bribery scheme as well as to pay full restitution. Sentencing has been scheduled for Sept. 22, 2015.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency, Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael Solis and Danial Bennett of the Middle District of Georgia.
Former U.S. Army Specialist Pleads Guilty to Taking A Bribe While Deployed in AfghanistanRead the Press Release
WASHINGTON – A former specialist with the U.S. Army pleaded guilty to accepting a bribe from an Afghan truck driver at Forward Operating Base Gardez, Afghanistan (FOB Gardez), in exchange for allowing the driver to take thousands of gallons of fuel from the base for resale on the black market. Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia made the announcement.
Anthony Don Tran, 28, of Stockton, California, pleaded guilty before U.S. District Court Judge Beth L. Freeman of the Northern District of California to one count of bribery of a public official.
According to admissions made in conjunction with his guilty plea, in exchange for $20,000 in cash, Tran permitted a local Afghan fuel truck to depart FOB Gardez without downloading roughly 12,000 gallons of fuel purchased by the U.S. government and designated for the base. Tran admitted that, on May 21, 2013, after returning from deployment, he purchased a 2010 Dodge Challenger with the cash derived from the bribe.
In addition, Tran admitted to accepting at least $1,000 in cash from two other members of his unit, U.S. Army sergeants James Edward Norris and Seneca Hampton, in exchange for Tran agreeing not to report them for also taking bribes for fuel. Both Norris and Hampton previously pleaded guilty to their roles in the scheme. On May 21, 2015, Norris was sentenced to serve 51 months in prison. Hampton is scheduled to be sentenced on July 28, 2015.
Pursuant to his plea agreement, Tran agreed to forfeit the proceeds he received from the bribery scheme as well as to pay full restitution. Sentencing has been scheduled for Sept. 22, 2015.
The case is being investigated by the U.S. Army Criminal Investigation Command, the Office of the Special Inspector General for Afghanistan Reconstruction, the Defense Criminal Investigative Service and the Defense Contract Audit Agency, Investigative Support Division. The case is being prosecuted by Trial Attorneys John Keller and Sean Mulryne of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Michael Solis and Danial Bennett of the Middle District of Georgia.
Former President of Riverside General Hospital Sentenced to 45 Years in Prison in $158 Million Medicare Fraud SchemeRead the Press Release
Operator of Psychiatric Facility Sentenced to 20 Years in Prison, and Owner of Group Home Sentenced to 12 Years in Prison
The former president of a Houston hospital, his son and a co-conspirator were sentenced today to 45 years, 20 years and 12 years in prison, respectively, for their roles in a $158 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Lucy R. Cruz of the Internal Revenue Service Criminal Investigation’s (IRS-CI) Houston Field Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Mike Fields of the U.S. Department of Health & Human Services-Office of the Inspector General (HHS-OIG) Dallas Regional Office, Special Agent in Charge Joseph J. Del Favero of the Railroad Retirement Board-Office of Inspector General (RRB-OIG) and Inspector General Patrick E. McFarland of the Office of Personnel Management-Office of Inspector General (OPM-OIG) made the announcement.
“The former President of Houston's Riverside hospital, his son and their co-conspirators saw mentally ill, elderly and disabled Medicare beneficiaries as commodities to be turned into profit centers – not as vulnerable individuals in need of health care,” said Assistant Attorney General Caldwell. “Rather than providing needed medical care to a historically underserved community, the defendants ran a longstanding hospital into the ground through their greed and fraud. According to the evidence presented at trial, the defendants had patients sit around the facility watching movies while they received no treatment. Meanwhile, the defendants billed Medicare more than $158 million for care that was never provided. This brazen fraud cannot and will not be tolerated.”
Earnest Gibson III, 70, the former president of Riverside General Hospital, Earnest Gibson IV, 37, the operator of Devotions Care Solutions, a satellite psychiatric facility of Riverside General Hospital, and Regina Askew, 50, the owner of Safe and Sound group home, were sentenced by U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. In addition to the significant terms of imprisonment, Earnest Gibson III was ordered to pay restitution in the amount of $46,753,180, Earnest Gibson IV was ordered to pay restitution in the amount of $7,518,480, and Regina Askew was ordered to pay restitution in the amount of $46,255,893.
Following a five-week jury trial, on Oct. 20, 2014, Earnest Gibson III, Earnest Gibson IV and Regina Askew each were convicted of conspiracy to commit health care fraud, conspiracy to pay and receive kickbacks, as well as related counts of paying or receiving illegal kickbacks. Earnest Gibson III and Earnest Gibson IV also were convicted of conspiracy to commit money laundering. Co-defendant Robert Crane, a patient recruiter, also was convicted of conspiracy to pay and receive kickbacks, and is scheduled to be sentenced on Dec. 9, 2015.
According to evidence presented at trial, from 2005 until June 2012, the defendants and others engaged in a scheme to defraud Medicare by submitting to Medicare, through Riverside and its satellite locations, approximately $158 million in false and fraudulent claims for partial hospitalization program (PHP) services. A PHP is a form of intensive outpatient treatment for severe mental illness.
Specifically, evidence at trial demonstrated that the Medicare beneficiaries for whom the hospital billed Medicare did not qualify for or need PHP services. Moreover, the evidence showed that Medicare beneficiaries rarely saw a psychiatrist and did not receive intensive psychiatric treatment. In fact, some of the beneficiaries were suffering from Alzheimer’s and could not actively participate in the treatment for which Medicare was billed.
Evidence presented at trial also showed that Earnest Gibson III paid kickbacks to patient recruiters and to owners and operators of group care homes, including Regina Askew, in exchange for which those individuals delivered ineligible Medicare beneficiaries to the hospital’s PHPs. Earnest Gibson IV also paid patient recruiters, including Robert Crane and others, to deliver ineligible Medicare beneficiaries to the specific PHP operated by Earnest Gibson IV.
To date, six other individuals either have pleaded guilty based on their involvement in the scheme. Mohammad Khan, an assistant administrator at Riverside, who managed many of the hospital’s PHPs, pleaded guilty to conspiracy to commit health care fraud, conspiracy to defraud the United States and to pay illegal kickbacks, and five counts of paying illegal kickbacks; on May 21, 2015, Mohammad Khan was sentenced by U.S. District Judge Sim Lake of the Southern District of Texas to 40 years in prison for his role in the scheme. William Bullock, an operator of a Riverside satellite location, as well as Leslie Clark, Robert Ferguson, Waddie McDuffie and Sharonda Holmes, who were involved in paying or receiving kickbacks, also have pleaded guilty to participating in the scheme and await sentencing.
The case was investigated by the FBI, IRS-CI, Texas MFCU, HHS-OIG, RRB-OIG and OPM-OIG. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas. The case is being prosecuted by Assistant Chiefs Laura M.K. Cordova and Jennifer L. Saulino and Trial Attorney Ashlee C. McFarlane of the Criminal Division’s Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who collectively have billed the Medicare program for more than $6.5 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Former Lee Police Chief Convicted by Federal Jury of ExtortionRead the Press Release
BOSTON – The former chief of the Lee Police Department (LPD) was convicted today in U.S. District Court in Springfield following a three-week trial of extorting a $4,000 payment from a couple facing prostitution charges in Southern Berkshire District Court.
Joseph Buffis, 57, of Pittsfield, Mass., was convicted by a federal jury of extortion under color of official right. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Oct. 19, 2015.
As the Lee Police Chief, Buffis solicited and controlled public donations to the Edward J. Laliberte Toy Fund, a children’s holiday toy fund. On Feb. 21, 2012, Buffis extorted a $4,000 check “donation,” payable to the toy fund, from two individuals who were facing prostitution-related charges. Buffis then deposited the $4,000 check into the toy fund’s bank account and quickly withdrew $3,990 of these funds in three checks that he wrote to “Cash,” but deposited into a personal bank account that he owned with his wife. Buffis used the diverted funds to pay various personal expenses. When law enforcement commenced an investigation into this activity, Buffis repeatedly lied about the disposition of these funds.
Buffis faces a second trial on one count of mail fraud. According to the allegations of the superseding indictment, soon after Buffis became Lee Chief of Police in 2011, he arranged for the Town of Lee to provide the LPD with four iPhones – one for himself and three for other LPD officers. Rather than distribute the three iPhones to his LPD officers, Buffis gave them to his wife and their two children for their personal use. From Oct. 5, 2011 to Aug. 21, 2013, Buffis caused the Town of Lee to mail Verizon Wireless a series of checks totaling approximately $5,091 for the phones Buffis’s gave to wife and children.
Today, the jury also acquitted Buffis of three counts of wire fraud, one count of mail fraud, and seven counts of money laundering. Those charges were related to Buffis’s operation of the toy fund.
The extortion charge provides a sentence of no greater than 20 years in prison, five years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Vincent B, Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Timothy P. Alben, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Steven H. Breslow and Deepika Shukla of Ortiz’s Springfield Branch Office.
Former Funeral Home Owner Sentenced to 21 Months in Federal Prison on Food Stamp Benefit Fraud ConvictionRead the Press Release
DALLAS — A Mansfield, Texas, woman who pleaded guilty earlier this year to one count of food stamp benefit fraud, was sentenced today, announced John Parker, Acting U.S. Attorney for the Northern District of Texas.
Rachel Hardy, 36, was sentenced by U.S. District Judge Barbara M. G. Lynn to 21 months in federal prison and ordered to pay $76,494 in restitution. Judge Lynn ordered that she surrender to the Bureau of Prisons on August 4, 2015.
The U.S. Department of Agriculture’s (USDA) Food Stamp Program is known as the Supplemental Nutritional Assistance Program (SNAP). The Texas Health and Human Services Commission (THHSC) administers SNAP in Texas.
The investigation began in 2012 when the Southwest Region USDA, Office of the Inspector General, received a referral about an individual who was receiving SNAP benefits who had failed to disclose a change in household composition and income from the ownership of two businesses. That individual was later identified as Hardy.
The investigation revealed that Hardy and her husband, who is the father of her youngest child, were married on February 14, 2010, in Las Vegas, Nevada. On April 8, 2010, Hardy submitted a SNAP benefits application, certifying she was a “single-parent-mother,” with no income, living in a household that consisted only of her children. Hardy’s application was approved, and she began receiving SNAP benefits.
On December 1, 2010, Hardy registered with Tarrant County as the owner operator of a tax refund and estate planning business called “Mighty Dollar Tax,” in Arlington, Texas. From April 8, 2010, through June 5, 2011, Hardy completed and submitted THHSC certifications reporting no income and claiming to live alone with her children.
On February 21, 2011, Hardy purchased a 2006 H2 Hummer for $26,000 and a 2008 Mercedes Benz CL S500 sedan for $41,700; she paid for each with a cashier’s check. At the time she purchased these vehicles, Hardy reported to THHSC that she was an unemployed, single-parent-mother living alone at home with her children.
An April 19, 2011, Hardy registered with Tarrant County as the owner operator of the Johnson Family Mortuary in Fort Worth, Texas. Again, on June 14, 2011, Hardy reported to THHSC that she was an unemployed single-parent-mother living alone at home with her children.
That same day, Hardy went to the Dallas County THHSC office where she completed and submitted a THHSC Application for Assistance Form. In doing so, she certified she was a “single-parent-mother” with no income living in a household that consisted only of her children.
On February 11, 2012, Hardy purchased a 2008 Land Rover Range Rover from Park Place Motors with a $53,000 cashier’s check. A few days later, on February 22, 2012, Hardy again certified to THHSC that she was an unemployed single-parent-mother living at home with her children.
The THHSC re-certifications and interviews revealed Hardy neither claimed a spouse nor any other income provided to her, or to anyone else in the household. Hardy admits that she failed to disclose material facts to THHSC and admits unlawfully receiving SNAP benefits to which she was not entitled.
The Texas Housing and Neighborhood Services; THHSC, OIG; USDA, OIG; U.S. Department of Housing and Urban Development, OIG; and U.S. Department of Education, OIG investigated.
Assistant U.S. Attorney Aaron Wiley prosecuted.
Former D’Hanis State Bank President Pleads Guilty to Wire FraudRead the Press Release
In San Antonio today, a former D’Hanis State Bank (DSB) president Laurie Mayfield (aka “Laurie H. Scott”) admitted that she filed fraudulent bank regulating reports which overestimated the bank’s assets announced Acting United States Attorney Richard L. Durbin, Jr., Special Agent in Charge Christopher Combs of the FBI’s San Antonio Division and U.S. Secret Service Special Agent in Charge Lee Dotson.
Appearing before United States Magistrate Judge John Primomo, the 54–year-old Fredericksburg, TX, resident pleaded guilty to one count of wire fraud. According to court records, from January 2012 until September 2014, Mayfield prepared and filed false Consolidated Reports of Condition and Income (aka “Call Reports) with federal and state bank regulators on behalf of DSB which overstated the assets of DSB by approximately $830,000. By pleading guilty, Mayfield admitted that on September 16, 2014, she emailed those false reports to a prospective buyer of DSB. The buyer relied on those false DSB Call Reports in their decision to purchase DSB.
Mayfield faces up to 30 years in federal prison. She remains on bond pending sentencing scheduled for September 9, 2015, before United States District Judge Xavier Rodriguez.
The case resulted from a joint investigation by the Federal Bureau of Investigation, U.S. Secret Service, Federal Deposit Insurance Corporation (FDIC) and the Office of Inspector General for the Board of Governors of the Federal Reserve System – Consumer Financial Protection Bureau. This case is being prosecuted by Assistant United States Attorney Greg Surovic.
Former Connecticut Resident Admits Operating Investment SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOSEPH T. MORRIS, 52, of Fort Lauderdale, Fla., formerly of Connecticut, pleaded guilty today in Bridgeport federal court to operating an investment scheme that defrauded individuals out of approximately $175,000.
According to court documents and statements made in court, MORRIS and two other individuals formed a company in October 2011 to develop business opportunities in Iraq. The company’s initial focus was on establishing a pizza restaurant at the U.S. Consulate compound in Erbil, Iraq, and establishing a business to distribute and install specialty window film on vehicles and at hotels, residences, and government buildings, which would protect windows and windshields from blast and breakage, and provide heat retention, ultra-violet shielding, and privacy. MORRIS was the company’s in-country manager in Iraq.
In pleading guilty, MORRIS admitted that he made numerous fraudulent representations to his co-founders regarding the restaurant and the window film business, knowing that the representations would be communicated to potential investors to induce them to invest in the company. Through the use of fraudulent emails and photographs, MORRIS falsely represented that a lease had been signed to establish a pizzeria on the U.S. consulate compound in Erbil, that renovations were underway, and that progress was being made toward completing renovations and opening the restaurant. MORRIS also falsely represented that the company had an exclusive arrangement with a specialty window film manufacturer to distribute and install the window film in all of Iraq. Based on these misrepresentations, MORRIS caused approximately a dozen investors, most of whom were U.S. military veterans, to invest approximately $175,000 in the company. Instead of using the money from investors to pay for legitimate business expenses, MORRIS diverted large sums of money for his own personal use.
The scheme was revealed in late April to early May 2012 when one of the co-founders discovered that the company did not have a lease or agreement to open and operate a pizza restaurant at the U.S. consulate compound in Erbil and that the company did not have an exclusive arrangement with a window film manufacturer to distribute and install specialty window film in Iraq.
MORRIS pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Jeffrey A. Meyer on September 17, 2015.
This matter has been investigated by the U.S. Secret Service, the Wilton Police Department, and the Connecticut Financial Crimes Task Force, which includes federal, state and local law enforcement agencies. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
Former City Employee Sentenced for Million Dollar Ink Cartridge ScamRead the Press Release
PHILADELPHIA – Calvin Duncan, 63, a former Philadelphia Water Department employee, was sentenced today to 24 months in prison and three years of supervised release for a scheme to defraud the City of Philadelphia of more than $1 million. Duncan, of Philadelphia, worked as a mailroom clerk and was responsible for purchasing supplies, including printer ink and toner cartridges, for PWD’s administrative offices. Between January 1, 2006 and January 5, 2012, Duncan ordered printer ink and toner cartridges, for which the City of Philadelphia paid approximately $1,368,091.19, falsely claiming that the cartridges were for PWD employees’ use. Instead, Duncan sold the cartridges for approximately $545,412.79 and had them shipped to his co-conspirators using PWD’s UPS shipping account. Duncan pleaded guilty, on August 9, 2013, to five counts of mail fraud.
In addition to the prison term, U.S. District Court Judge Jan E. DuBois ordered restitution in the amount of $1,368,091.19 and ordered forfeiture of $545,412.39. Duncan’s co-conspirators, Derek and Danita Willis, who own Laser Cartridge Plus, Inc. in Russellville, Arkansas, pleaded guilty on April 29, 2014. Derek Willis was sentenced to 36 months in prison; Danita Willis was sentenced to 12 months and 1 day in prison.
Amy Kurland, Inspector General for the City of Philadelphia , testified at the sentencing hearing for Derek Willis and Danita Willis and described the harm as follows:
“The City of Philadelphia could have used that money for a number of things. Approximately 500 students could have been educated. Teachers could have been hired to educate that number of students. That money would have funded the entire Fire Inspection Department at L&I for a year. The money could have also been used for equipment, for body cameras for 200 officers. …When something like this happens, when people are able to steal that amount of money from the city, it makes the citizens lose confidence in government and lose confidence in the city’s ability to function appropriately.”
The investigation was initiated by the Philadelphia Office of the Inspector General and included the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Tomika N. Stevens Patterson.
Former CEO of Sommet Group Sentenced to 20 Years in Prison for $25 Million Fraud SchemeRead the Press Release
L. Brian Whitfield, 49, formerly of Franklin, Tennessee, was sentenced yesterday to serve 20 years in prison, announced David Rivera, United States Attorney for the Middle District of Tennessee. On November 7, 2014, a jury found Whitfield guilty of conspiracy, wire fraud, theft from an employee benefit program, filing a false tax return, and money laundering.
Today’s sentence, handed down by U.S. District Court Judge Todd J. Campbell, also included imposition of a $1.8 million money judgment and a term of 3 years of supervised release. Judge Campbell also ordered Whitfield to pay more than $25.9 million in restitution.
“This sentence demonstrates that those at the highest levels of corporations, especially chief executives whose criminal schemes rob the innocent of their health, financial future and economic stability, will not find shelter in false assertions of a failing economy,” said United States Attorney David Rivera. “This defendant’s massive fraud scheme harmed more than a thousand victims, and this sentence serves as an appropriate punishment.”
During the trial before Judge Campbell last year, the evidence established that Whitfield controlled the finances and funds of the Sommet Group LLC, a payroll processing company that operated in Franklin, Tennessee. From 2008 until 2010, Whitfield diverted millions of dollars of client funds that had been earmarked to fund client employee retirement accounts, to pay health claims, and to pay taxes. Instead of using these client funds as Sommet had promised, Whitfield diverted millions of dollars to prop up affiliated companies that he controlled and spent millions of dollars to acquire the naming rights of Nashville’s professional hockey arena, which came to be known as the Sommet Center. Whitfield also diverted client money to pay for personal expenses including purchasing a $430,000 houseboat, a $99,000 ski boat, luxury clothing and the construction of a $150,000 pool in his backyard.
As a result of Whitfield’s fraud, retirement funds were not fully deposited into the accounts of employees whose paychecks were processed by Sommet, medical and prescription-drug claims by employees were not fully paid, and taxes owed by clients to federal, state, and local governments went unpaid.
The evidence at trial also proved that Whitfield vastly underreported wages and taxes on Sommet’s quarterly employer tax return that he personally prepared and filed. Across six quarters from 2008 – 2010, Sommet paid more than $83 million in wages to its employees and the employees of its clients, but Whitfield reported less than $4 million in wages to the IRS, resulting in an underpayment of more than $20 million in taxes.
In July 2013 D. Edwin Todd, a part owner of Sommet, pleaded guilty to one count of conspiracy in this case, and Marsha Whitfield, Sommet’s Vice President of Payroll, pleaded guilty to one count of conspiracy and one count of wire fraud. Both Todd and Marsha Whitfield await sentencing.
This case was investigated by agents with the Internal Revenue Service- Criminal Investigation, the Federal Bureau of Investigation and the Department of Labor, Employee Benefits Security Administration. The case was prosecuted by Assistant U.S. Attorneys William F. Abely, Sandra G. Moses, and Stephanie N. Toussaint.
Former Athol City Clerk Sentenced to Prison for EmbezzlementRead the Press Release
COEUR D'ALENE - Sally R. Hansen, 39, the former Athol City Clerk, was sentenced today to 48 months in prison followed by three years of supervised release for embezzlement, U.S. Attorney Wendy J. Olson announced. Chief U.S. District Judge B. Lynn Winmill also ordered Hansen to pay a special assessment in the amount of $15,000, and to pay $434,112 in restitution to the City of Athol. Hansen pleaded guilty to the charge on January 21, 2015.
According to court documents, during the time of her employment, Hansen used the wires and fraudulently took $417,879 from the City of Athol. She did this by writing fraudulent checks to herself and her husband and using the wires to transfer money between different city accounts.
“The crime Ms. Hansen committed greatly affected the citizens and taxpayers of Athol,” said Olson. “Her repeated violations of her oath of office and responsibilities to be a good steward of the public trust have appropriately ended with a prison sentence.”
The case was investigated by Kootenai County Sheriff and U.S. Secret Service (USSS).
Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants.
Florida Man Charged with Using Bogus Transportation Company to Defraud New Jersey Factoring Business Out of $220,000Read the Press Release
NEWARK, N.J. - A Seminole, Florida, man was arrested at his home by FBI agents this morning for allegedly using phony invoices from his transportation company to obtain $220,000 from a New Jersey-based factoring business, U.S. Attorney Paul J. Fishman announced.
Karl Stehlin, a/k/a “Mark Sawyer,” 60, was charged by indictment with five counts of wire fraud. He is scheduled to appear this afternoon before U.S. Magistrate Judge Thomas B. McCoun III in Tampa, Florida, federal court.
According to the indictment:
From June 2014 through September 2014, Stehlin allegedly defrauded a Bergen County, New Jersey, factoring business that purchased accounts receivable in return for short term financing. Stehlin created a bogus Idaho-based company, Sawyer Express Transportation Inc., and emailed accounts receivable invoices to the factoring company for transportation services that were never provided. As a result, Stehlin was able to defraud the factoring company out of $220,000 in advance payment on those invoices.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Richard M. Frankel in Newark, with the investigation leading to today’s arrest. He also thanked special agents of the FBI Tampa Division, under the direction of Special Agent in Charge Paul Wysopal, for their assistance.
The charges in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
The government is represented by Assistant U.S. Attorneys Lakshmi Herman and Andrew Kogan of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
First Cousins from La Plant Sentenced for IncestRead the Press Release
Acting United States Attorney Randolph J. Seiler announced that a La Plant, South Dakota, man and woman, convicted of Incest, were sentenced by U.S. District Judge Roberto A. Lange.
Nicholas Ray White Eagle, age 28, was sentenced to 12 months and one day in custody, followed by 1 year of supervised release. Fawn Lynn Scott, age 22, was sentenced to 4 months in custody, followed by 2 years of supervised release. Both were ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
White Eagle and Scott were indicted by a federal grand jury on January 14, 2015, and pled guilty to Incest in March of 2015.
On or about October 21, 2013, first cousins White Eagle and Scott had consensual sexual intercourse that produced a child with a genetic disability. This is the third child born to these two cousins. At the time of the sexual intercourse, White Eagle and Scott were not legally married and were within the degrees of consanguinity with each other within which a marriage was void.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
White Eagle and Scott were immediately turned over to the custody of the U.S. Marshals Service.
Felon who Recruited and Trained Juveniles for Bank Robberies Sentenced to Seven Years in PrisonRead the Press Release
A 31-year-old King County man was sentenced today in U.S. District Court in Seattle to seven years in prison for his involvement in eight bank robberies in Western Washington, announced U.S. Attorney Annette L. Hayes. VINCENT G. THOMPSON, recruited juveniles who he and a partner trained to commit bank robberies. In addition, THOMPSON and his partner, Robert Cal Adams, robbed Chase Bank on Canyon Road East in Puyallup on April 14, 2014. At sentencing U.S. District Judge John C. Coughenour said the sentence was appropriate because THOMPSON involved juveniles in the crimes. Judge Coughenour ordered THOMPSON to serve three years of supervised release following the prison sentence.
On January 26, 2015, THOMPSON pleaded guilty to two counts of bank robbery. THOMPSON’s co-defendant, Robert Adams was previously sentenced to 120 months for his involvement in a string of bank robberies where three juveniles were provided with threatening notes and instruction on how to execute the bank robberies. Those robberies include the April 1, 2014 robbery of Chase Bank on Pacific Avenue in Tacoma; the April 7, 2014 robbery of US Bank on 176th St., Puyallup, Washington; the April 9, 2014 robberies of Alaska Federal Credit Union branches in Renton and Kent, Washington; the April 9, 2014 robbery of US Bank on Pacific Highway in Des Moines, Washington; the April 10, 2014 robbery of Wells Fargo on 72nd Street East, Tacoma; the April 11, 2014 robbery of BECU on Pacific Highway South, Kent, and the April 11, 2014 robbery of Bank of America on SW 336th St., Federal Way, Washington.
In asking for the seven year sentence prosecutors wrote to the court, “Thompson’s choice to assist in sending juveniles to rob banks presents an extraordinary risk to the community, bank tellers, security guards, law enforcement and – most significantly – the juveniles themselves. This was quite literally a tragedy waiting to happen…. for an adult to encourage juveniles to engage in serious criminal actions – simply because the adult wanted to be ‘paid’ without working – is deserving of a significant period of incarceration.”
The case was investigated by the FBI’s Seattle Safe Streets Task Force, with assistance from multiple local police departments and the Washington State Department of Corrections.
The case was prosecuted by Special Assistant United States Attorney Stephen Hobbs. Mr. Hobbs is a Senior Deputy King County prosecutor specially designated to prosecute cases in federal court.
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3061
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictment(s) against the following:
Ten Individuals Charged with Conspiracy to Defraud the United States. The following individuals were charged in a single-count Indictment with conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371.
Richard K. Rouse, age 44, of Donalds, South Carolina
Bernard Williams, age 50, of Clinton, South Carolina
Carlton C. Fuller, age 47, of Cross Hill, South Carolina
Earl J. Stewart, age 57, of New Orleans, Louisiana
James W. Reeder, age 45, of Joanna, South Carolina
Paul J. Gibson, age 60, of Johnston, South Carolina
Willie L. Fuller, age 58, of Greenwood, South Carolina
Leonard T. Hawthorne, age 50, of Clinton, South Carolina
Meredith Q. Williams, age 52, of Greenwood, South Carolina
Clarence Holloway, age 58, of Troy, South Carolina
The maximum penalty each could receive is five years imprisonment and a fine of $250,000.00. The case was investigated by agents of the Department of Veterans Affairs, Office of Inspector General, and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
Anderson County Woman Indicted for Delay of Mail. Georgia L. Coker, age 22, of Belton, South Carolina, was charged in a single-count Indictment with delay of mail by a postal employee, a violation of Title 18, United States Code, Section 1703. The maximum penalty Coker could receive is five years imprisonment and a fine of $250,000.00. The case was investigated by agents of the United States Postal Service, Office of Inspector General, and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.
Greenville Man Indicted on Drug Charges. Keith E. Smith, age 36, of Greenville, South Carolina, was charged in a single-count Indictment with possessing with intent to distribute controlled substances, a violation of Title 21, United States Code, Section 841(a)(1). The maximum penalty Smith could receive is a minimum term of imprisonment of ten years and a maximum term of life imprisonment and a fine of $8,000,000. The case was investigated by agents of the Drug Enforcement Administration and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Father, Son Indicted for $862,000 Fraud Against FarmersRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a father and son in northern Missouri were indicted by a federal grand jury today for their roles in a conspiracy to defraud farmers in 10 states of nearly $862,000.
Mark Henry, Sr., 50, of Cameron, Mo., and his son, Mark Henry, Jr., 28, of Lucerne, Mo., were charged in a 15-count indictment returned by a federal grand jury in Kansas City, Mo.
According to today’s indictment, the Henrys represented themselves as farmers and advertised on Craigslist and other places to sell hay to farmers throughout the United States who were experiencing drought conditions between January 2010 and October 2012. They sold more than $3.2 million of hay, which was advertised as “excellent brome, orchard and timothy hay . . . big heavy bales.” According to the indictment, however, most of the hay consisted of weeds, sticks, bushes, small trees, briars, thistles and woody stems; some of it was moldy and of very poor feed quality.
Today’s indictment also alleges that the Henrys purposely shorted farmers and failed to provide all or a portion of the hay to their customers in Missouri, Texas, Oklahoma, Iowa, Colorado, Nebraska, Kansas, Arkansas, Wyoming and New Mexico. They allegedly demanded farmers prepay for the hay and failed to refund the prepayment to farmers who did not receive hay or who received poor quality hay. The Henrys also allegedly failed to pay for hay they had purchased from other farmers for resale.
In one incident cited by the indictment, a customer from Colorado prepaid $5,000 for 60 bales of hay. On Aug. 11, 2012, she arrived at a field and began testing the bales as they were being loaded. Because some bales tested for high moisture content, they were set aside. Mark Henry, Sr., arrived at the field, the indictment says, and began to yell at them. He told her she could not pick and choose what bales she wanted. He told her, if you take one; you take them all. She told Henry, Sr. the bales she set aside would mold, but he responded he was not going to put up with them picking and choosing the bales and ordered them off his property. She asked for her money back, but he told her he did not have his checkbook with him and his son was in Columbia, Mo. The customer’s son told Henry, Sr., they were not leaving until they got their hay bales or their money back. Henry, Sr. allegedly went to his pickup and obtained a claw hammer and advanced towards the son, threatening to bash his head in. They got into their trucks and left without loading the 60 bales she purchased.
Another victim from New Mexico signed a contract for 6,000 bales and wired $195,000 for 3,000 bales in advance. The customer received 90 bales of very poor quality hay, according to the indictment, for a total loss of $195,975 (including trucking and other expenses).
The hay hauling was advertised at $2.50 per load mile to deliver the hay, which was much less than normally charged. According to the indictment, however, those farmers who contracted with the Henrys to haul the hay were charged almost 40 percent more than the advertised price, and the Henrys failed to pay two trucking companies for the hauling: Glaser Trucking Service ($53,400) and Action Transit Company ($4,400), even though the money was collected from the farmers.
In addition, the indictment says, the Henrys advertised the sale of cattle on Craigslist between December 2012 and February 2013. The cattle were advertised as “front pasture” young cows, from the age of four to six. According to the indictment, however, most of the cows were much older and worth less than younger cows. The Henrys sold 389 head of cattle to farmers from Missouri, Kansas, Illinois and Iowa for approximately $538,700. The indictment alleges that approximately $59,700 was fraudulent because the cows were much older and worth less than charged.
According to the indictment, a licensed veterinarian examined 221 of the cows and determined that the age and/or condition of 199 cows was misrepresented. The majority of the cows were worth less than the price charged, the indictment says. The price on the majority of the cows allegedly was overinflated approximately $300 to $400 each.
In addition to the conspiracy, the Henrys are charged together in seven counts of wire fraud and seven counts of mail fraud.
Today’s indictment also contains a forfeiture allegation, which would require both defendants to forfeit to the government any property obtained as a result of the alleged violations, including a money judgment of $861,932.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Jane Pansing Brown. It was investigated by the FBI, the Missouri State Highway Patrol’s Division of Drug and Crime Control, the Putnam County, Mo., Sheriff’s Department and the Putnam County, Mo., Prosecutor’s Office.
Father in Father-Son Sex Trafficking Operation Sentenced to 13 Years in PrisonRead the Press Release
COLUMBUS – Keith A. Arrick Sr., 47, of Ft. Mitchell, Kentucky was sentenced in U.S. District Court today to 13 years in prison for sex trafficking by force, fraud or coercion.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Ohio Attorney General Mike DeWine and members of the Central Ohio Human Trafficking Task Force, including Marlon V. Miller, Special Agent in Charge, U.S. Homeland Security Investigations, Colonel Paul Pride of the Ohio State Highway Patrol and Columbus Police Chief Kim Jacobs announced the plea entered today before Senior U.S. District Judge Peter C. Economus.
The investigation by the Central Ohio Human Trafficking Task Force found that between September 2013 and February 2014, Arrick Sr. used various hotels in the Columbus area to harbor women, including a minor female, to engage in commercial sex acts for the financial benefit of the defendant. He recruited customers through internet websites by posting photos of the women or others who resembled the women, instructing the women how much to charge for the various acts then kept a portion of the money for himself, and provided the women with illegal narcotics, including heroin. The investigation found that one victim was brought to Columbus from Kentucky. Arrick Sr. used physical violence and threats of physical violence if the victims indicated they wished to stop performing commercial sex acts.
Arrick Sr. pleaded guilty to sex trafficking by force, fraud or coercion in September 2014.
Arrick Sr.’s son, Keith A. Arrick Jr., 22, of Columbus, Ohio pleaded guilty in July 2014 to sex trafficking of children. He was sentenced to10 years in prison.
U.S. Attorney Stewart commended the cooperative investigation by the Central Ohio Human Trafficking Task Force, which was formed in 2012 and is part of the Ohio Attorney General’s Ohio Organized Crime Investigations Commission, and which also includes authorities from the Attorney General's Bureau of Criminal Investigation (BCI), U.S. Homeland Security Investigations, Columbus Division of Police, Ohio State Highway Patrol, Powell Police Department, Federal Bureau of Investigation and the Delaware County Prosecutor's Office. Assistant U.S. Attorney Heather Hill is representing the government in this case.
Environmental Contractor Sentenced to Probation with Home Detention for Defrauding the NavyRead the Press Release
PITTSBURGH - A Washington County resident has been sentenced in federal court to three years of probation, with the first 12 months to served on home detention, on his conviction of wire fraud, United States Attorney David J. Hickton announced today.
Senior United States District Judge Terrence F. McVerry imposed the sentence on Barry Kent Peterson, 48, of Canonsburg, Pa.
According to information presented to the court, Peterson was the Vice President of Fullard Environmental Controls ("FEC") in Ford City, and that FEC performed demolition services in 2007 for the United States Department of the Navy in Beaufort, South Carolina. Peterson, along with another person employed at FEC, defrauded the government by submitting false information to the Department of the Navy regarding the costs that were incurred by FEC to perform the demolition services. Peterson, through FEC, defrauded the government in the amount of approximately $772,701.10. As part of the sentence, Judge McVerry ordered Peterson to forfeit $772,701.10 to the United States government.
During the sentencing hearing, Judge McVerry stated that the sentence of probation, rather than a sentence of imprisonment was due, in part, to Peterson’s extraordinary family hardships relating to the medical conditions of two of Peterson’s children.
Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Department of Defense, Office of Inspector General and Naval Criminal Investigative Service for the investigation leading to the successful prosecution of Peterson.
East Hampton Woman Sentenced to More Than 5 Years in Prison for Real Estate Appraisal SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ANN HILS, 55, of East Hampton, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 63 months of imprisonment, followed by five years of supervised release, for operating a real estate appraisal scheme.
According to court documents and statements made in court, HILS was not a provisional or certified real estate appraiser in the state of Connecticut at any time. Between approximately December 2006 and March 2008, HILS conspired with her daughter, Brandy Gomez, to obtain more than $47,000 in real estate appraisal fees to which they were not entitled. As part of the scheme, HILS and Gomez knowingly submitted falsified work logs to the Connecticut Department of Consumer Protection purporting to show that Gomez, a provisional appraiser, completed dozens of real estate appraisals under the supervision of a certified appraiser when, in fact, Gomez had not performed such work and was not entitled to such appraisal fees.
HILS also used the individual names, certified appraiser license numbers, business names, and, in some instances, signatures, of three certified appraisers without their authorization in dozens of fraudulent real estate appraisals. HILS submitted the appraisals to co-conspirators who used the appraisals in support of obtaining fraudulent mortgages for straw borrowers. The appraisals contributed to more than $2.5 million in actual or intended losses to various mortgage lenders.
HILS was ordered to pay $47,908 in restitution.
On August 22, 2014, HILS pleaded guilty to one count of conspiracy to commit mail and bank fraud.
On March 19, 2014, Gomez pleaded guilty to the same charge. On May 5, 2015, she was sentenced to one day of imprisonment and five years of supervised release, and was ordered to pay $47,908 in restitution.
This case was investigated by the Federal Bureau of Investigation, U.S. Department of Housing and Urban Development – Office of Inspector General, Internal Revenue Service – Criminal Investigation Division and U.S. Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Dickson-Based Grease Hauling Company and Its President Plead Guilty to Violating the Clean Water ActRead the Press Release
Southern Grease Company, a grease hauling company based in Dickson, Tennessee, and its president, George Butterworth, 75, of Dickson, pleaded guilty today to charges arising from the illegal disposal of waste grease into municipal sewer systems, announced David Rivera, United States Attorney for the Middle District of Tennessee.
Specifically, Southern Grease and Butterworth pleaded guilty to violating the Clean Water Act, conspiring to violate the Clean Water Act, and making false statements to agents with the Environmental Protection Agency. Southern Grease Company also pleaded guilty to one count of mail fraud, arising from its fraudulent promises to customers and municipalities regarding the disposal of waste grease.
“The United States Attorney’s Office and its law enforcement partners are committed to vigorously prosecuting those who knowingly violate environmental laws,” said United States Attorney Rivera. “This case should send a message that corporations and corporate officers that pursue profit at the expense of municipal resources and the public’s right to a clean environment will face serious felony convictions as well as significant financial penalties.”
In a hearing before U.S. District Court Judge Aleta A. Trauger, the defendants acknowledged the following: Southern Grease contracted with restaurants and other customers in Tennessee and Kentucky to collect and dispose of the customers’ waste grease, otherwise known as FOG (Fats, Oils and Grease) waste. From approximately September 2011 through December 2013, Southern Grease, at the direction of Butterworth, charged its customers for the collection and proper disposal of waste grease, but failed to dispose of the collected grease at an appropriate facility as promised. Instead, Southern Grease illegally discharged waste grease into grease interceptors that were connected to the municipal sewer systems. This illegal dumping of grease caused damage to municipal sewer systems, including by blocking pipes and by clogging the operation of pump stations. For example, the defendants admitted that, in December 2013, it dumped waste grease into a grease interceptor in Clarksville, Tennessee, which resulted in the obstruction of pipes within the Clarksville sewer system and damage to a Clarksville pumping station, the operation of which was interrupted for cleaning and repairs.
The defendants also admitted providing false information to municipalities and making false statements to EPA agents regarding the final disposal location of the waste grease collected by Southern Grease.
In December 2014 federal agents seized more than $391,000 that had been involved in or derived from federal criminal offenses relating to the illegal dumping of waste grease by Southern Grease.
Last month, George McGee, 51, of Dickson, also pleaded guilty to violating the Clean Water Act, to conspiring to violate the Clean Water Act, and to making false statements to agents with the EPA. McGee had previously served as Operations Manager for Southern Grease.
Butterworth and McGee each face up to 5 years in prison for each count of conviction, as well as a criminal fine. Southern Grease faces criminal forfeiture as well as maximum criminal fines of up to $250,000 on three counts of conviction and up to $50,000 per day of violation of the Clean Water Act. The defendants will also be sentenced to pay restitution to the City of Clarksville and Dickson County. All will be sentenced by Judge Trauger on September 14, 2015.
The case was investigated by the EPA Criminal Investigation Division, with assistance from the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney William F. Abely.
Delaware Sex Offender Indicted for Producing Child Porn, Illegal Sexual ActivityRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Delaware man with a prior conviction for child sexual abuse was indicted by a federal grand jury today for using the Internet to entice a Richmond, Mo.-area teenager to engage in illicit sexual activity, and for producing and possessing child pornography.
Aaron T. Fletcher, 39, of Seaford, Del., was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Fletcher was convicted in Delaware in 2000 of raping a victim under 16 years of age.
Today’s indictment alleges that Fletcher enticed a minor to engage in illicit sexual activity between Feb. 1, 2015, and March 30, 2015.
Fletcher is also charged with one count of using a minor to produce child pornography between March 27 and 30, 2015, and one count of possessing child pornography on March 30, 2015.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the Richmond, Mo., Police Department, the Ray County, Mo., Sheriff’s Department, the Jackson County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Collier County Man Sentenced to Six Years in Connection with Sunshine Pharmacy Health Care FraudRead the Press Release
Fort Myers, Florida – Senior United States District Judge John E. Steele has sentenced Adam Parrish (35, Naples) to six years in federal prison for conspiracy to commit health care fraud, aggravated identity theft, and improperly using a DEA Registration Number. He pleaded guilty on February 18, 2015.
According to his plea agreement, from February 2009 through July 2012, Adam Parrish conspired with Delmer Holmes Parrish and Patricia Parrish to defraud federal health care benefit programs out of approximately $351,358. All three, along with others, used Sunshine Pharmacy and Sunshine Solutions in Naples to further their unlawful scheme to defraud the government. The co-conspirators submitted and caused claims to be submitted for reimbursement from the Medicaid, Medicare, and TRICARE programs for prescriptions that had not been filled or provided to beneficiaries and recipients, including prescriptions for patients that had not been written or authorized by any duly licensed physician. In addition, they submitted and caused claims to be submitted for beneficiaries and recipients who were deceased. In carrying out the offenses, the conspirators also used the means of identification of individuals who were enrolled in the Medicaid, Medicare, or TRICARE programs without their knowledge or consent. As a result of the scheme, the government was defrauded out of approximately $351,358.
In addition, Adam Parrish admitted that he had unlawfully used the names of three federal health care beneficiaries to commit health care fraud. He also admitted that he had used two different physicians’ DEA Registration Numbers, on three occasions, to acquire or obtain controlled substances from pharmacies in Collier County.
Delmer Parrish and Patricia Parrish were sentenced for their role in the conspiracy in April 2014. Delmer Parrish, who was a licensed pharmacist and owner of Sunshine Pharmacy, surrendered his pharmacist license and was sentenced to 24 months in federal prison. Patricia Parrish, Delmer Parrish’s mother, was sentenced to house arrest for 120 days, to be followed by three years of probation. In addition, Delmer and Patricia Parrish paid $351,358.14 in restitution to the United States at the time of their sentencing.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Department of Defense, Defense Criminal Investigative Service; and the Drug Enforcement Administration, with assistance from the Naples Police Department; Collier County Sheriff's Office; and the U.S. Secret Service. It was prosecuted by Assistant United States Attorney David G. Lazarus.